EFTA01447125.pdf

The CROCI valuation methodology Main differences between accounting and economic data Accounting data Economic data Net capital invested Is historical cost accounted and ignores intangible economic assets, Is adjusted for inflation, and also includes capitalized intangibles, such as research and development, and brand advertising. such as research and development, and brand advertising. Return on Equity CROCI Does not represent a real return (for example, depreciation is not Includes cash return over the life of the assets. Depreciation is charged economically and asset life is inconsistent.) charged economically, with similar assets having similar lives. Market capitalization Enterprise value Only includes the value of the equity, ignoring debt and other calls on Includes financial debt and other liabilities, such as leases, shareholders. warranties and pension underfunding. Net income Economic earnings Does not reflect the real level of profitability. Offers a true and comparable measure of profitability Source: Deutsche Bank CROCI team Deutsche Assel For institutional use only I Not for public viewing or distribution & Wealth Management Investment products: No bank guarantee I Not FDIC Insured I May lose value 3 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0101654 CONFIDENTIAL SDNY_GM_00247838 EFTA01447125